West Virginia: Sales Tax Handbook
What constitutes sales tax nexus in West Virginia?
One of the more complicated aspects of West Virginia sales tax law is sales tax nexus, the determination of whether a particular sale took place within the taxation jurisdiction of West Virginia, and is thus subject to state (and possibly local) sales taxes.
If a vendor's transactions are determined to have nexus in West Virginia, the vendor must register for a West Virginia sales tax license and collect appropriate sales taxes from the buyer for all transactions with nexus in the state. On this page, we have compiled some of the most commonly needed facts about what constitutes sales tax nexus in West Virginia.
Sales Tax Nexus in West Virginia
According to West Virginian law, retailers who have tax nexus can be defined as "engaging in business". This term is defined by a business having, maintaining, occupying, or using a physical facility within the boundaries of this state through any representative or employee, permanently or temporarily.
Out of state dealers can be considered to be "engaging in business" if, within the states boundaries, they maintain a physical place of business, perform a service, or have an employee or representative perform a service, in connection to sold tangible property from themselves or and related entity or member, or if any business is solicited by any representative on behalf of the retailer.
For additional details on sales tax nexus law in West Virginia, see the nexus information page from the State Tax Department at http://www.salestaxsupport.com/sales-tax-information/states-sales-tax-by-state/WV-West-Virginia/tax-nexus
Taxation of Internet-Based Sales in West Virginia
NOTE: 2018 Supreme Court Ruling Regarding Online Sales Taxes
In the 2018 Supreme Court case South Dakota vs. Wayfair Inc, Et Al., the court overturned a previous ruling that required a merchant to have physical nexus in order for a state to collect sales tax. This means that any state is now free to enforce collection of sales taxes on out-of-state online merchants. The information provided here may be subject to change, and many states are expected to begin collecting online sales taxes following this ruling.
Depending on the situation, West Virginia may or may not charge sales tax on Internet-based transactions. Any retailer who carefully or deliberately chooses to exploit their market in West Virginia with the use of any media driven means, an example of which would be computer-assisted shopping, which can create nexus with the state for the sole purpose of sales and use tax
The nexus status and taxability of Internet-based sales, by vendors and/or consumers within West Virginia, have been the subject of hot debate in recent years. You can learn more on our introduction to Internet-based sales taxes.
Does my business have tax nexus in West Virginia?
The folks at the sales tax compliance company Avalara are an approved West Virginia sales tax partner, and you can use their free West Virginia nexus wizard tool to determine whether or not your business has nexus, and is therefore required to pay West Virginia sales taxes. If you're interested in automating your sales tax collection and filing process, click here to get more information.
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